Sure, but the central bankers have been demanding full-on austerity.
So who cares if the austerity theory only works when 2+2=5, do it anyway? Sure, the last 50 people who drank Drano for their cold died, do it anyway?
They can't keep goint the way they have been, but that doesn't make austerity the answer. They need an answer that at least hasn't been shown to make it worse.
I didn't claim Greece doesn't neet to make any changes, I just said that depending on 2+2 equaling 5 will not help them.
I honestly don't know.
I don't know how to cure the common cold either. I DO know that drinking a bottle of drain cleaner is not a good answer to a cold.
I also know that austerity is NOT a good answer to Greece's problem.
I said debt service.
I posted a link to the paper as well. It's only natural that the right isn't going to talk about one of it's more embarrassing screw-ups.
There is a difference between making needed changes and austerity. If you don't know that, then you're in no position to judge someone else's knowledge of economics.
I never said they didn't need to make some changes. I just said austerity isn't the answer.
Read the paper and the many follow-on papers. Austerity CAUSES the debt spiral. It's like selling your seed corn to make today's payment.
I absolutely agree that Greece has a real problem. No matter what they do, they need to balance their budget (not the same as austerity). That's the thing, the demand wasn't cut back, the demand is full on austerity. It's a demand from people who've got the religion and don't care if the math says different.
It may be that the Euro is not in their best interest. In many ways, this is a truly unique situation. Because they are on the euro, they are denied a few important tools that have traditionally been used to get out of situations like they are in.
I live in an apartment building and there is no wiring in the parkade. Nor is there any requirement (or incentive) to retrofit the building.
Law in California says landlords can't refuse to allow you to install EV charging infrastructure. You'll have to foot the bill, but they can't say no:
The Russians would pick up the Baltics and the Slavic countries, the rest of us will rely on the Americans for protection again... except that the Americans probably aren't that interested in protecting us this time around.
Some Americans wouldn't be...
I would, but I'd like our military deployment costs to be picked up by the EU...
Put 10 American divisions in France and Germany and have the tab picked up by the EU, and I think most complaints from Americans about "defending Europe" will go away. Most of those complaints are about money, not about the principle of doing it.
I am Belgian. Greece owes me, my wife and children over 3000 euro. We fronted it out of our taxes and if they don't pay us back, we'll pay it back out of our taxes. Now, I am all for social solidarity... anybody who has spent time here in Belgium knows how easy it is for an IT worker to do independent contracts under the table. I declare all of my side activities and pay my taxes specifically because I believe in helping those who are down on their luck.
But solidarity is a two-way street. Greece was bailed out once, in 2010, in exchange for reforms. They were slow in reforming and in 2012 we had to bail them out again... and they still haven't reformed and here we are in 2015 and they want more money. The reforms that our governments are asking are not onerous. It basically comes down to "don't spend more than you can pay". The Greeks for some reason seem to think that the rest of the Eurozone should pay for armies of useless bureaucrats and pensioners whose median pensions are higher than ours make more than my parents. Now, Greece is small and strategically important, so maybe every Belgian should just give them 600 euro and call it a day.
But then Podemos in Spain will be asking for the same thing. Then the Five star movement in Italy will want their free money. I'm sorry, but fuck you guys. I work my fucking ass off to support my family and my countrymen. Greece threw my good will in my face. They can go become lackeys to the Russians for all I care, fight a civil war, I don't care. I hope my government refuses to give them another cent.
This deserves to be quoted...
The reality is that it doesn't even matter if you're right or not, if enough people believe it, then it might as well be true.
I personally believe that Spain and Italy are watching this closely, you're right about that.
We shall see what happens...
But now we've now reached the point where otherwise rational people are talking about "dropping the hammer", as if having an incipient failed state in Europe is a small price to pay for 600 euro in your pocket.
It is a LOT more than 600 euro... if Greece gets it, then Italy and Spain will be right behind them asking for their free money...
Either the Euro will survive Greece leaving, or it won't. But Greece staying is no longer an option.
If Greece gets what they want, the euro will be sunk by Spain and Italy. If they don't, they'll leave the euro and it will either survive or it won't.
That is where we're all at, there are no other options left.
Yet you want to saddle Greece with similar crushing debt when they have a fascist party, Golden Dawn. So your plan is to.....repeat that mistake a second time?
No one is afraid of Greece invading the rest of Europe, clearly they have no ability to do any such thing.
And what about their post-WWII debt, which was largely forgiven? By countries like Greece? So, to recap: Germany destroys the continent and all is forgiven.
Germany, the nation that launched WWII, no longer existed after WWII. They surrendered and lost and were split up. There wasn't much left anyway, the whole place was bombed and blown to bits anyway. What was left we either took for our own use (the V2 rocket program for example), or used to keep millions more from starving.